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Carer, disability and family payments in sights of new Social Services Minister Christian Porter

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Malcolm Turnbull's first month as Prime Minister, as seen by Fairfax cartoonists and illustrators.

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Social Services Minister Christian Porter is on the hunt for savings in his new portfolio, hinting spending cuts on carer and disability payments may be needed to get the budget back to surplus. 

In comments that echo his predecessor, Scott Morrison, Mr Porter said on Tuesday night that his portfolio "has to be a contributor to slowing the growth of expenditure down". 

Noting that the Department of Social Services spent $137 billion last year - about a third of the federal budget - Mr Porter warned that welfare was growing faster than any "other single budget [area] in government". 

Social Services Minister Christian Porter (right) sits on the frontbench in Parliament with Minister for Justice Michael Keenan and Minister for Small Business and Assistant Treasurer Kelly O'Dwyer.

Social Services Minister Christian Porter (right) sits on the frontbench in Parliament with Minister for Justice Michael Keenan and Minister for Small Business and Assistant Treasurer Kelly O'Dwyer. Photo: Alex Ellinghausen

In an interview with Alan Jones on Sky News, the former West Australian treasurer singled out support for carers, which he said had been growing at 14 per cent per year over the past decade, as well as the Disability Support Pension. 

The new minister, who also welcomed his first child the day after he was sworn in in September, said Parliament also had to "restrain" the growth in Family Tax Benefits. 

"[This] is another massive area of expenditure, in excess of $20 billion worth of taxpayers' money a year."

The government has so far struggled to get the crossbench support needed to make cuts to Family Tax Benefits, which the Coalition says will pay for childcare reforms. 

Mr Porter also leant his support to broader reforms to the welfare system, in the wake of a report this year, which recommended the government streamline the huge number of welfare payments to just five primary payments

Mr Porter spoke to report author Patrick McClure on Tuesday and agreed the system needed to be changed.

"It's impossible to imagine a system that is more complicated than the one we have," he said.. 

On Wednesday, Australian National University social policy expert Peter Whiteford​  said Australia had the most targeted welfare system in the OECD and "probably the world".

The Crawford School of Public Policy professor added that while the raw number of people receiving payments such as Newstart and DSP had significantly increased in recent years, it was more accurate to look at the number of people receiving payments as a percentage of the working age population. 

Using this measure, from 1976 to 2014, the numbers of those receiving benefits have made a steady decline since a peak in the mid-1990s. 

Professor Whiteford said the only place in the welfare system "where there's a lot of money [and] you could target more" was the aged pension but he noted, "the politics of that is not very nice". 

According to the Intergenerational Report, under current policy settings, spending on the aged pension will climb from 2.9 per cent of GDP to 3.6 per cent over the next 40 years. If 2014-15 budget measures to increase the pension age and decrease indexation levels were approved, spending would drop to 2.7 per cent of GDP. 

The report also shows that based on current policy settings, payments to individuals - which include family tax benefits and the dole but not the pension - are due to fall from 4.5 per cent of GDP to 3.4 per cent by 2054-55. 

Labor's families and payments spokeswoman Jenny Macklin slammed Mr Porter's comments on Wednesday. 

"The fact that Christian Porter has flagged another round of cuts in the middle of anti-poverty week shows just how out of touch he is," she said. 

"You cannot bring the budget back into surplus by cutting support to the most vulnerable Australians."

​

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52 comments

  • Why is it always the poor and less well off targeted to claw back savings.

    It appears nothing has changed.

    Commenter
    PEarn
    Location
    Melbourne
    Date and time
    October 14, 2015, 1:36PM
    • Got to pay for those tax breaks for the rich somehow.

      Commenter
      temphi
      Location
      melbourne
      Date and time
      October 14, 2015, 1:52PM
    • My thoughts exactly. My heart sank whenI read this. Surpluses just aren't that important in the real world of government .

      Commenter
      Di Keller
      Date and time
      October 14, 2015, 2:12PM
    • I feel the same way. I would rather they used my taxes to help needy people make ends meet than use them to feather the nests of rich superannuants. What has happened to this country? Government priorities are completely backwards!

      Commenter
      Mardi
      Location
      Tuggeranong
      Date and time
      October 14, 2015, 3:11PM
    • God! The Liberals are obsessed with surpluses. It's pathetic!

      I mean how hard it is? In the tough times borrow and pursue major nation building capital works which keeps the nation working and the money flowing around the economy, in the good times pay off the debt and save..............

      No, no, the Libs know better. In the good times sell off the gold reserves at criminally low prices, wipe out the economy's resilience by chucking all the savings at stupid welfare schemes to buy votes putting the nation into a serious structural deficit, implement unsustainable tax cuts and the greatest financial rort in the world, superannuation tax breaks that only benefit those who don't need it. In the bad time protect their own by not rolling back these terrible measures and smash the most vulnerable and least able to afford it in the hip pocket to keep paying for it. Better economic managers my arse. Reprehensible!

      Commenter
      eyeroll
      Location
      Sydney
      Date and time
      October 14, 2015, 3:23PM
    • Gee PEarn leading the pack this arvo.
      It's their basic philosophy to attack the poor, the disadvantaged, minorities, the disenfranchised.
      They who think they are born to rule, despite how they sell themselves are mere puppets for the big end and aspire to be part of it themselves.
      There's obviously no move to the centre, not even a nudge.

      Commenter
      A country gal
      Date and time
      October 14, 2015, 3:51PM
    • At 14 % per annum, disability pensions are growing at a much faster pace than our economy. If left unchecked, it will consume our economy.

      Commenter
      Kingstondude
      Location
      Melbourne
      Date and time
      October 14, 2015, 5:07PM
    • Perhaps the carers of Australian need to pool their money and pump it into a few hedge funds in the Cayman Islands. According to our new dear leader it's the way to go.

      Commenter
      Taxing Turnbull
      Location
      Not Cayman Islands
      Date and time
      October 14, 2015, 5:15PM
    • @ Kingstondude, Maybe that means people are getting sicker?? But one way or the other it is not something that can/should be measured by money. Maybe we should be be spending money in the areas that it is being taken away to improve all outcomes. ??

      Interest rates are so low borrowed money is nearly free money now. It's an ideal time to do it !!

      Commenter
      Di Keller
      Date and time
      October 14, 2015, 5:37PM
    • @eyeroll, great comment. Thank you.

      To other posters, carers' payments are not like a pension. In my case, I was carer for my late husband while he underwent 7 months of treatment for terminal pancreatic cancer. The costs are never-ending. You must accompany your cared-for one to every medical appointment, and these are often on a daily basis, what with GPs, oncologists, radiologists, pathologists, chemotherapy, etc. There is a substantial gap between cost of treatment and rebate, and you are constantly submitting claims for said rebate, often on a daily basis. I don't drive and live in a rural area, so transport costs were considerable, even though community transport schemes were in place.The carers' payment of the lofty sum of $1000 is supposed to cover some of those increased costs, provided the GP signs a form to the effect that the patient is likely to die within 3 months. My partner's GP attested to the fact that he would not do so - and who would sign such a form in front of the patient? So Social Services declined the application. My partner died within 6 weeks and, after some phone protests, Social Services reversed the decision. So in the end the right thing was done but it was far harder than it should have been.

      If it were not for carers, whether for adults or children, the government would be in a much harder place. We do it out of love and commitment, but sometimes we can't afford love anymore.

      Commenter
      Banjo
      Location
      Eden
      Date and time
      October 14, 2015, 6:38PM

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